[AusNOG] Carrier Licensing Changes - Residential and small business customers

[Paul Julian]

I think that is so very well put Bevan, I just hope that those providers can weather the storm and survive, otherwise the government tsunami will hit with vengeance and once again the people of this country will be left with only one provider, one option, and one price.

The next thing we are sure to see after this announcement will be the ACCC imposing mandatory wholesale pricing across all wholesale providers irrelevant of how much it actually costs to provide the service, that should spell the end for any who have been able to make it to that point.

Regards
Paul


Pushing out an NBN based upon a completely flawed business model (commercial return) leaves parties with only two (2) ways to remedy.
First is to accept the commercial return was simply never achievable and do a $20B+ write-down, or go the longer path and try to prop up the flawed business model using protectionism and other un-natural legislative and regulatory actions.  Both Governments have defaulted to the later.

The greater the failure in the financial model (which was been horrendously understated by the previous government and passed on to the current Government) the greater that un-natural acts and the consequences to industry.  As they say ³two wrongs don¹t make a right².

The consequence is that providers that have worked/invested to deliver services to customers that have not been adequately serviced are taking a hit and significant network investment in Australia has now all but dried up as the level of sovereign risk here is simply too high.

Cheers

[b]